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Version 1 10 worth 189311 to you today e you should

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worth $189,311 to you today.E)You should accept the $200,000 lump sum because the monthly payments areonly worth $195,413 to you today.F)None of the options are correct.Question DetailsDifficulty :1 EasyGradable : automaticAccessibility : Keyboard Navigation20)Your brother will borrow $17,800 to buy a car. The terms of the loan call for monthlypayments for 5 years at an 8.6-percent annual interest rate, compounded monthly. What is theamount of each payment?20) ______
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21)EAC Nutrition offers a 9.5-percent coupon bond with annual payments maturing 11 yearsfrom today. Your required return is 11.2 percent. What price are you willing to pay for this bondif the face (or par) value is $1,000?21) ______
Question DetailsDifficulty :1 EasyGradable : automaticAccessibility : Keyboard Navigation22)A project will produce after-tax operating cash inflows of $3,200 a year for 5 years. Theafter-tax salvage value of the project is expected to be $2,500 in year 5. The project’s initial costis $9,500. What is the net present value of this project if the required rate of return is 16 percent?22) ______
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Question DetailsGradable : automaticDifficulty :2 MediumAccessibility : Keyboard Navigation23)Which of the following should be included in the cash flow projections for a newproduct?I. Money already spent for research and development of the new productII. Capital expenditures for equipment to produce the new productIII. Increase in working capital needed to finance sales of the new productIV. Interest expense on the loan used to finance the new product launch23) ______A)II and III onlyB)II and IV onlyC)I, II, and III onlyD)II, III, and IV onlyE)I, II, III, and IVF)None of the options are correct.

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